This week in property: Highlights from Dec 31 to Jan 4

By Rachael Tan / EdgeProp | January 4, 2019 1:52 PM SGT
Property highlights of the week from Dec 31 to Jan 4:
1. Horizon Towers gives collective sale another try
The 221-unit Horizon Towers is located along Leonie Hill Road in prime District 9 (Photo Credit: JLL)
The owners of Horizon Towers are starting the New Year by giving collective sale another go. The reserve price remains unchanged at $1.1 billion, which translates to a land rate of $1,977 psf per plot ratio (psf ppr), after factoring the lease top-up premium estimated at $228 million.
As the site has a high development baseline, no development charge or differential premium for intensification of land use is payable, says Tan Hong Boon, JLL regional director of capital markets, the sole marketing agent for the collective sale. If the 10% bonus gross floor area is included, the land rate would be adjusted to $1,797 psf ppr.
2. Residential market to see spike in new launches
In the pipeline for launch next year are about 60 projects (Photo Credit: Samuel Isaac Chua/EdgeProp Singapore)
Another slate of new launches is being readied for launch after Chinese New Year, and these are of bigger projects, including SingHaiyi’s The Gazania (former Sun Rosier) and The Lilium (former How Sun Park).
The two biggest projects that will be rolled out in 2019 are the former Normanton Park (1,882 units) and Treasure at Tampines (former Tampines Court), with more than 2,000 units. “These are also likely to be launched in 1Q2019, after Chinese New Year,” says Gafoor.
In the pipeline for launch next year are about 60 projects. “The window of opportunity for launching projects is just eight to nine months,” says Gafoor. This is after discounting Chinese New Year (February), the June school holidays and December holidays, he says.
3. Homes for the wealthy — larger plots and higher prices for GCBs
A house on Dalvey Road changed hands for $93.9 million ($1,804 psf) in Sept, and is the most expensive GCB sold this year (Credit: JLL)
The total number of Good Class Bungalow transactions in 2018 stood at 39 as at end-November. Leong Boon Hoe, chief operating officer of List Sotheby’s International Realty Singapore (List SIR), expects the full-year figure to match the 42 deals last year.
GCB sales surged from 25 deals in 2014 to 32 in 2015. While the sales dipped slightly in 2016 to 29, they rose sharply to 42 last year. Leong attributes the strength of the GCB market to the profile of the owners and buyers: ultra-high-net-worth (UHNW) individuals with strong financial backing who are also long-term property investors.
4. Mall landlords and tenants reimagine space use
A view of prime Orchard Road — Singapore’s most famous shopping strip (Picture: Samuel Isaac Chua/The Edge Singapore)
With e-commerce changing consumer behaviour, even retailers and mall owners on Orchard Road are looking at ways to convert footfall into sales. There has been a restructuring of offerings in shopping malls, with an increased focus on activity-based and F&B tenants, observes June Chua, Cushman & Wakefield (C&W) head of leasing, commercial/industrial.
Current trends in the retail scene include pop-ups, multi-label concepts and the introduction of co-working spaces, continues Chua, “all of which strive to keep the mall experience fresh for shoppers”. Landlords and retailers are expected to invest more in technology to “seamlessly integrate the online and offline experience” for consumers, she adds.